Select the button rectangle and the red X shape. Switch to the Bevel
Tool (Ctrl F3). Drag any of the red arrow control handles towards the
center a short distance to create an inner bevel. From the Slider Type
drop down list on the Infobar, select Size. Change the size of the bevel
to 2pix. Press Enter to apply the change.
Hold down the Shift key (to select multiple objects) and select the
button and button text and group them (Ctrl g). Group the large
rectangle and the other text. Do not group the red X.